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United Rentals (URI) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, United Rentals (URI) closed at $275.64, marking a +1.9% move from the previous day. This change outpaced the S&P 500's 0.59% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.07%.

Heading into today, shares of the equipment rental company had gained 11.74% over the past month, outpacing the Construction sector's gain of 9.64% and the S&P 500's gain of 7.25% in that time.

Investors will be hoping for strength from United Rentals as it approaches its next earnings release, which is expected to be July 27, 2022. On that day, United Rentals is projected to report earnings of $6.48 per share, which would represent year-over-year growth of 39.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 17.86% from the year-ago period.

URI's full-year Zacks Consensus Estimates are calling for earnings of $29.37 per share and revenue of $11.32 billion. These results would represent year-over-year changes of +33.14% and +16.47%, respectively.

Investors should also note any recent changes to analyst estimates for United Rentals. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.05% lower within the past month. United Rentals is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, United Rentals currently has a Forward P/E ratio of 9.21. Its industry sports an average Forward P/E of 12.94, so we one might conclude that United Rentals is trading at a discount comparatively.

We can also see that URI currently has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow URI in the coming trading sessions, be sure to utilize Zacks.com.


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